Chapter 9 Practice Quiz: I can see the northern light
Chapter 9 Payroll Practice Quiz
Test your knowledge and understanding of payroll processes with this comprehensive quiz focused on Chapter 9: I Can See the Northern Light. This quiz consists of 37 questions that cover essential topics related to payroll deductions, employee entitlements, and remittances.
Key Features:
- Multiple choice questions
- Practice your skills and knowledge
- Ideal for students and professionals in accounting
If an employee has regular payroll deductions for a charitable donation contribution, but wants to stop making these contributions, you should –
Remember to change the amount in the payroll journal when you prepare a pay cheque
Ask the employee to reconsider because the contributions help you reach a goal for total donations
Change the amount in the remittances screen
Make the change in the ledger record for the employee
The sales by salesperson report –
Can be viewed by selecting from the Reports – Payroll menu
Can be viewed from the sales invoice
Shows only sales of inventory items
Can be helpful in calculating sales commissions
The salesperson for a sale is entered in –
The payroll journal in the invoice field
The sales journal in the employee field
The sales journal in the salesperson field
The sales journal in the job category field
Which of the following are not defined in the payroll ledger settings screens –
Payroll tax deduction settings
Payroll liability and expense linked accounts
Income and deduction names
Employee information and historical deductions
When finishing the history for the payroll ledger –
The employee history cannot be changed
The employee personal information cannot be corrected
The employee default deduction amounts cannot be corrected
The employee income and taxes cannot be corrected
What steps are involved in setting up the payroll ledger –
Enter the payroll names and settings defaults
Enter the linked payroll accounts for liabilities and expenses
Enter the employee information and historical deductions
All of the above
At any time you may change all but one of the following payroll ledger information –
The employee personal information
The employer’s income tax tables
The employee income and taxes
The employee default deductions
If historical payroll deduction data is not entered you will –
Allow tracking of year-to-date income
Not be able to track year-to-date deductions
Affect the current earnings and deductions
Allow proper T4 statement information
Which of the following choices include payroll linked accounts –
Assets – supplies, insurance
Liabilities – advances payable
Liabilities – CPP, EI, EHT
Revenue, purchases, discounts
Creating the employees’ records for payroll ledgers requires –
Input of personal and income and tax information
Input of historical income and deduction information
Input of default deduction information
All of the above
The employee default deductions –
Are the same for all employees
Are entered into the employee ledger records
Cannot be changed once you finish entering the history
Are defined by the Canada Revenue Agency tax laws
You must enter historical payroll income information for employees in the –
Historical income tab screen
Payroll ledger screen
Year-to-date income tab screen
None of the above
Corrections may be made to any payroll ledger personal information field by –
Double clicking the error to select it and typing the correct details
Entering a reminder Memo and typing the correct details
Selecting the proper default and typing the correct details
You cannot make changes to these fields
The default deduction rate for WCB (WSIB) deductions is entered in –
The deductions tab screen in the employee ledger record
The payroll ledger income settings screen
The payroll ledger taxes screen
The taxes tab screen in the employee ledger record
How are the linked accounts for CPP different from the linked accounts for income tax –
CPP has a linked liability account only; income tax has an expense account only
CPP has a linked expense account only; income tax has a liability account only
CPP has both linked liability and expense accounts; income tax has a liability account only
None of the above
Which one of the following statements about payroll linked accounts is correct –
Each employee has a unique linked wage expense account
Each employee must be linked to the same wage expense account
Each type of income must be linked to a unique expense account
None of the above
Which one of the following statements about payroll linked accounts is incorrect –
The default linked wage expense account is entered in the payroll linked accounts screen
The wage expense for all employees must be linked to the same wage expense accounts
You can enter a unique linked wage expense account for each employee
In the employee ledger record you can select the default linked wage expense account
Which of the following is not involved in setting up employee entitlements –
Naming the entitlements
Entering linked accounts for the entitlements
Entering the number of hours usually worked in a day
Entering the number of days of entitlement accrued for the employee
User-defined payroll expenses –
Are the same as other employer payroll expenses such as contributions to Employment Insurance (EI)
Are linked to liability and expense accounts
Are entered in the employee ledger deductions tab screen
Are the same amount for all employees
To create an employee benefit you would –
Choose allow benefits on the payroll settings screen
Choose the taxable benefit option on the taxes tab screen in the employee ledger
Enter the benefit amount on the taxes tab screen in the employee ledger
None of the above
To set up an employee for direct payroll deposit you must do all but one of the following –
Enter the percentage of the pay that is to be deposited to each bank account
Enter the bank, transit and account numbers as the bank account details
Enter the total payroll amount that is deposited
Choose the option direct deposit paycheque for this employee
Which of the following is true of income types –
Income types are defined on the payroll settings screen
Repayment and salary are income types you can select
Regular and overtime pay are defined as different income types
The income type for benefits and advance can be changed
Settings for deductions and income are defined on –
The payroll deductions settings screen
Payroll names setting screen
The taxes settings screen
None of the above
Payroll benefits are –
Payments made to employees for expenses like tuition and medical insurance
Donations made to other organizations on behalf of an employee
Usually taxable income
Non-taxable income
Paid sick leave or paid vacation time are –
Defined for individual employees on the benefits tab screen in the payroll ledger
Defined for all employees on a payroll settings screen
Modified in the payroll ledger records for individual employees
B and c above are correct
Which of the following statements is true about job categories –
By default, all employee names appear as in this job category when you create a new category
To define or name job categories, choose job categories from the setup menu – settings screen, payroll list
All employee names can be selected on sales invoices in the salesperson field
To assign employees to job categories, choose employee categories from the setup menu – settings screen, payroll list
Setting up for payroll remittances includes –
Marking Remittance suppliers in Payroll setup
Entering the amount to be submitted to each payroll authority
Entering the historical amount paid to each payroll authority
Choose exempt from taxes for the supplier/payroll authority
Setting up for payroll remittances does not include –
Linking each deduction to a supplier/payroll authority
Entering an opening balance for each supplier/payroll authority
Identifying suppliers as payroll authorities in the supplier ledger records
All of the above are steps in setting up payroll remittances
Paid sick leave and paid vacation time are examples of –
Benefits
Income
Entitlements
All of the above
Setting up payroll entitlements includes –
Adding a user-defined expense for each entitlement
Adding linked liability and expense accounts for the entitlement
Adding linked liability accounts for the entitlement
None of the above
If a CPP amount is missing from a payroll journal entry, it is most likely that –
No linked account is entered for CPP Payable
The employee’s date of birth was entered incorrectly
CPP is not required in the province of employment
All of the above are possible explanations for the missing amount
When EI amounts are missing from a payroll journal entry in a February paycheque, you should check –
Whether or not you entered the historical amount correctly
Whether or not the employee’s date of birth is correct
Whether or not the linked accounts are correct
A and c are correct
When CPP amounts are missing from payroll journal entries only in the December paycheques, it may be because –
You entered the historical amount incorrectly
The employee’s date of birth is incorrect
The employee has already paid the maximum amount for the year
All of the above
When you create a new job category –
All employees are assigned to the new category initially
No employees are assigned to new category initially
All employees in this category are not salespersons initially
You cannot assign an employee from another category to the new category at the same time
When you set up payroll remittances, the Balance Forward amounts –
Are the same as the opening trial balance liability amounts for that date
Are the same as the opening trial balance expense amounts for that date
The balance forward date must be the same as the fiscal start date
Both a and c above are correct
Which of the following statements is true about linked accounts for the Payroll module –
The Vacation Payable linked account is not required when all employees are salaried
The Payroll linked bank account is not required when all employees have their pay cheques deposited directly to their bank accounts
None of the linked accounts for Payroll are essential linked accounts that are required to finish the history
The Advances Receivable linked account is an essential account (required to finish the history)
The following Payroll linked accounts are essential accounts that are required to finish the history –
The linked Vacation Payable account
The linked Advances Receivable account
The linked Payroll bank account
Both a & b are correct
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